Monday, November 19, 2012

Currency Crisis!

Slowdown and crisis together

Everyone seems to be confused about where exactly the Rupee is headed and whether the Chinese currency Renmimbi will ever appreciate or not. The only thing where there is a clear consensus is that the American economy is in trouble and that a slowdown in the American economy will have a definite impact on currency movements and values in Asia.

With US Federal Reserve’s decision to slash the interest rate by 0.75% in order to give a momentum to a sluggish US economy, the global exchange rate seems to get disturbed.


Source : IIPM Editorial, 2012.

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